Holding With Conviction Theory.
Why retailer Gets Broken In Stock Market ?
♨️Those who did Not Got Broken They become Legends in Stock market.
♨️They survived & Made money only coz the stocks in which they invested had conviction to Hold with patience.
♨️During Down fall & panic in equities.Even legends has to Go Thru the Pain.
🔷️How Retailers Behave During Downfall & Panic :
♨️Retailer Dont want to Bear the Pain.
♨️They Lack Conviction & Patience.
♨️They want to make Quick Money.
♨️They want to buy at lowest price & want to sell at Higest price
♨️They feel frustrated as they keep watching there portfolio everyday & During downfall there stock keeps correcting.
♨️Giving Time to investments is only solution during downfalls.
♨️They want to recover there losses very quickly by trading in quantity or by trading Daily.Sometimes doing nothing is much better during.
♨️Retailers become more confident after a Run huge Run up in stocks.Thet Dont Buy when Stocks available at cheap & Appeling Valuation.
♨️First Do Research & Than Buy Stock. Generally People first Buys & Than Do Research.
🔷️CASE STUDY :
♨️Ace investor Rakesh junjunwala bought 6cr shares of Titan@Rs.3
♨️After few years stock rose to Rs.80
♨️So 18 Cr Investment Grew To 480cr
♨️In 2008 – Markets started correcting.There was no stoppage to the fall in market.Markets had biggest Correction.And even price of Titan corrected till Rs.20.
♨️So 480cr became 120cr in just few months.
♨️The rise was slow & Gradually But fall came in Just few months.So at that time ace investor Mr.Junjunwala was in Notional loss of 350cr.
♨️He had two Option either to Wait patiently OR To book whatever profits available on Table.
♨️He was still in profits ,He never booked profits & continued To hold stock with conviction & Believed in Management & Companies Growth story.
♨️But in 10 years i.e – In 2018 – 120cr Turned into 7000cr stake AND Still Titan Making New Life High even in 2019
♨️If Retailer investor had bought Titan in 2004-2005@3 Would he had even waited Till 80 levels & If waited till 80 & When 2008 fall came ,He would had booked whatever profits available on table.
♨️Only few Retail investor thinks long term with conviction where money multiplies 50 to 100 times or even higher.
♨️If retail investor bought any stock@100.He had planned to keep stock for 10years.As soon as stock starts correcting due to sentiments.
➡️At – 90 his conviction Starts shaking.
➡️At – 80 He feels frustrated.
➡️At – 60 He feels markets are not his cup on tea.Still he holds.
➡️At 50 – He books Loss & Stock dips till 40 he feels thank God he exited at 50.
➡️Now stock makes bottom around 36- 38 Zone and than moves to 500 in 5- 6 years.
🔷️Points To keep in Mind
♨️If Management is Good & Company is On right track nothing would happen in Long term.
♨️Investors with strong study & Conviction wins in markets over a period of TIME.
Disc – All Views Expresses are personal and for Educational & study purpose only. HWC THEORY is created by wealthcreatures team only,one should do deep Study on Sector & Individual stock before investing.Consult your financial advisor before taking any position based on above Theory.
4 thoughts on “HWC THEORY – HOLD WITH CONVICTION.”
Well written. But most average investors don’t do enough market research to develop the conviction to hold. As a result, they sell in fear. Mr.Jhunjhunwala had the conviction in Titan and he is reaping the rewards today.
Personally, I am going to Hold Deepak Nitrite (HWC) for 10+ years. Hope its the right thing to do.
I like their diversified business model and reasonably confident that they will keep adding more products to their portfolio to keep that growth going.
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Yes you can Hold For longterm with conviction.Good promotors.Good products.Chemical boom.Leader in phenol & Acetone.Superior ROCE & ROE.Huge expansion of Greenfield project in future.One of my fav pick from 2016 when was @100.
Great, Thanks. Would u be updating on your Telegram or here, in case there is a need for exit(sooner than expected)